Economic Overreliance on the Hydrocarbon Sector: 

Qatar’s continued reliance on hydrocarbons as a revenue source is evident in its fiscal forecasting.  Despite efforts to promote the non-hydrocarbon sectors and diversify the economy from hydrocarbons to knowledge-based sectors, the oil and gas sector has consistently contributed to over 70% of the government of Qatar’s total revenues since 2014, as well as over 80% of Qatar’s total exports.  Qatar’s multi-billion dollar investment in infrastructure, including highways, public transportation, lodging facilities, and new stadiums for the 2022 Men’s FIFA World Cup generated steady growth in the non-hydrocarbon portion of GDP since 2018. However, with the 2022 FIFA Men’s World Cup finished, new forces behind investment will need to emerge. Qatar is focused on its goals to diversify its economy and is investing in knowledge-based sectors like education, healthcare, and Information and Communication Technology (ICT) to support this visionary goal of economic diversification. As host of the 2022 FIFA Men’s World Cup, the 2027 Men’s Basketball World Cup, and the 2030 Asian Games, Qatar has invested in its goal of becoming the sports hub of the Middle East. These initiatives will likely be bolstered by the new law governing Public-Private Partnerships (PPPs), which the Amir signed in mid-2020. Economic diversification away from hydrocarbons is the main focus of Qatar National Vision 2030, yet the North Field LNG Expansion has reaffirmed that hydrocarbons will continue to remain the major player of Qatar’s economy.

Scams:  

The U.S. Commercial Service and the U.S. Embassy receive frequent reports of scams directed at U.S.-based firms.  These scams often involve a person or entity posing as a legitimate Qatar-based entity or investor.  U.S. firms that are approached by entities claiming to be Qatari representatives or investors, particularly if they request any sort of private information and/or advance fees, should contact the U.S. Commercial Service in Doha to confirm the veracity of the opportunity before proceeding.

Foreign Ownership:  

Qatar generally encourages foreign investment and has enacted some key reforms in recent years to foster FDI. As part of the government’s efforts to attract more foreign companies and investors, a new foreign investment law was approved in January 2019 (Law 1/2019), allowing 100% foreign ownership in most sectors, with full repatriation of profits, protection from expropriation, and several other benefits. However, these new laws remain largely unproven and the processes to start a business remains sluggish and laden with red tape.

Additionally, regarding foreign ownership of real estate investments, the government enacted a law (Law 16/2018) to allow foreign individuals, companies, and real estate developers freehold ownership of real estate in ten designated zones and ‎usufructuary rights up to 99 years in 16 other zones.  This law also allows foreign real estate investors and owners to request residency in Qatar for as long as they own their property. 

Government Procurement:  

Procurement Law 24/2015 aims to promote a fair, transparent, simple, and speedy tendering process.  The law removed the Central Tendering Committee and created a Government Procurement Department within the Ministry of Finance which has oversight responsibility over most government tenders; the Qatar Investment and Trade Court also plays that role. The law also called for the forming of committees for tender disputes resolution, allowing two-stage tendering, and providing performance bond waivers for SMEs.  Nonetheless, there are some persistent concerns regarding transparency in procurement by government entities, particularly due to a lack of clarity in the conditions and criteria of tenders, improper notification or explanation to non-qualifying companies, and the inability of bidders to formally challenge awards. Qatar gives preferential treatment to suppliers using local content in bids for government procurement.  Bids for government contracts that contain goods with Qatari content are discounted by 10 percent.  Participation in tenders with a value of QAR 5,000,000 ($1.37 million) or less is limited to locally registered contractors, suppliers, and merchants. The Government Procurement Department also created a website, Government Procurement Services, to consolidate all tenders with the goal of providing relevant information to interested bidders; unfortunately, not all government tenders are posted on this portal.  Qatar is not a signatory to the WTO Agreement on government procurement.

Import Duties:  

While import duties don’t present a major barrier, it is important for U.S. companies to make sure their products are not subject to import restrictions and that proper duties are paid. The import duty for most processed food products is a flat 5 percent ad valorem.  There are no import duties for live animals, fresh fruits and vegetables, seafood, grains, flours, tea, sugar, spices, and seeds for planting.  As a Gulf Cooperation Council (GCC) country, Qatar applies the Unified Customs Law to its imported goods.  This includes the imposition of a 5 percent tariff on the cost, insurance, and freight values of products such as textiles, apparel, and travel goods.  An excise tax of 50 percent was introduced on energy and sugary drinks on January 1, 2019.  A 100 percent excise tax was also introduced on alcohol and “specialty” products, including tobacco and pork.  On February 1, 2023, a digital tax stamp was applied to all tobacco products.

Import Restrictions:  

Qatar has no import quotas. Non-tariff barriers, however, arise occasionally.  For instance, unlicensed military and security items are not allowed.  Furthermore, the sale of pork and alcohol remains heavily regulated, and sales are restricted to only one distribution point in all of Qatar, which is managed by the Qatar Distribution Company (QDC), a government entity.

Standards and Labeling:  

As part of the GCC Customs Union, Qatar works with other member states toward unifying custom standards and conformity assessment regimes. Nonetheless, each member state applies its own existing standards until a uniform GCC standard is set. The Embassy commercial team has received periodic concerns of European standards being favored over U.S. standards.

Food Labeling and Packaging: 

Labeling and marking requirements are compulsory for any products exported to Qatar.  Labels must either be in Arabic only, or bilingual with Arabic as the second language.  Labels must be applied prior to transportation. Production and expiration dates are required to be on all original food labels.

Personal Connections: 

Corruption in Qatar does not generally affect business. Qatar ranks 40th in the world on Transparency International’s 2022 Corruption Perceptions Index, with a score of 58/100 (with 100 being very transparent and 0 being very corrupt). While Qatar’s score reflects slightly less transparency than businesses can expect to find in the United States (69/100), Qatar has the third-most transparent score in the Middle East/North Africa region. However, with a very small population of Qatari nationals, the power of personal connections in Qatar plays a major role in the local business culture.  Companies need to be very cognizant in selecting the right local partner. If companies opt not to open a local office, they should travel regularly to the market to ensure they maintain the necessary connections to succeed.

Travel Advisories:  

Stringent Covid-19 travel restrictions were in place from March 2020 through November 2022, impacting business travel to/from Qatar.  While Qatar completely reopened its borders in late 2022, U.S. citizens visiting Qatar are advised to monitor the U.S. Embassy’s website and the Qatar Ministry of Public Health  for the latest information and travel policies.